Regulatory Alerts2018-11-18
Instruction No. 14/2018, dated November 19
The National Bank of Angola, through Instruction No. 14/2018, mandates that commercial banks must remunerate collateral deposits associated with letters of credit. It establishes that such deposits cannot exceed the letter's value converted at the bank's reference exchange rate, with remuneration indexed to LUIBOR (subject to a commercial margin) or the prevailing commercial interest rate, depending on their regulatory origin. Non-compliance triggers penalties under existing financial and exchange rate legislation, while the National Bank of Angola retains final authority to resolve interpretative doubts.
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